Anil Ambani Enters Electric Vehicles Biz as Reliance Infra Incorporates New Reliance EV Pvt Ltd Subsidiary

Anil Ambani's Reliance Infrastructure has recently made a significant move by incorporating a new subsidiary, Reliance EV Private Limited (REVPL), through its subsidiary Reliance Velocity Limited (RVL). This incorporation took place on June 6, 2024, and it's a strategic step into the automobile sector, specifically focusing on electric vehicles.

The authorized and paid-up share capital for REVPL is set at ₹1,00,000, divided into 10,000 equity shares of ₹10 each. The main objective of this new subsidiary is to engage in the manufacturing and dealing of vehicles of various descriptions and components for transport and conveyance, utilizing any nature of fuel.

This development has positively impacted Reliance Infrastructure's market performance, with a notable surge of 9.84% in its share price, reaching ₹184.25. It reflects the growing investor confidence in the company's expansion into the high-growth electric vehicle sector.

Specific plans of Reliance EV Private Limited

Reliance EV Private Limited (REVPL), a subsidiary of Reliance Infrastructure, has outlined several specific plans as part of its foray into the electric vehicle (EV) sector:
  • Manufacturing and Dealing: REVPL aims to manufacture and deal in vehicles of every description and components for transport and conveyance using any nature of fuel.
  • Infrastructure Development: The company is investing in the installation of a network of EV charging stations and battery swap stations at its mobility stations and other standalone locations.
  • Battery Manufacturing: Reliance is also entering the lithium-ion battery manufacturing space with LFP (lithium iron phosphate) chemistry, which is crucial for the EV industry.
  • Collaborations: There are reports of talks with Tesla for setting up an EV manufacturing plant in India, indicating potential collaborations with global leaders in the EV space.
These initiatives reflect Reliance's commitment to the EV sector and its strategy to become a significant player in the rapidly growing market for sustainable transportation solutions.

Indian EV Market

The Indian Electric Vehicles market is at an inflection point, with EVs accounting for about 5% of total vehicle sales between October 2022 and September 2023. This is expected to reach more than 40% penetration by 2030, driven by strong adoption in both two-wheeler (2W) and three-wheeler (3W) categories.

India's EV sales soared 40% to 1.75 million units in FY2024, with electric two-wheelers (E2Ws) and electric three-wheelers (E3Ws) contributing 94% of the total EV sales. 

Reliance Infrastructure has been working towards becoming debt-free. Anil Ambani, the chairman of Reliance Infrastructure, announced that the company would become debt-free by utilizing funds received from the Delhi Metro Rail Corporation (DMRC) following a Supreme Court judgment. The company had a standalone debt of ₹3,808 crore and was expected to receive ₹7,100 crore from DMRC, which would be used to repay the debt.

However, it's important to note that these statements were made in the past, and the current status of the company's debt should be verified with the most recent financial reports or official announcements from Reliance Infrastructure for the latest updates.
Advertisements

Post a Comment

Comment

أحدث أقدم